Purchased a Rental with father in law; Need help

[Hector Andujar]

Hello, everyone 

I recently purchased a 3 family beach rental unit with my father in law. The loan process got us tangled into a loan that was suppose to be a FHA, with a gift from family. End result is that we purchased the property together in both our names. I am recent to the real estate field within the last two years. This is my second 3 family home located in Massachusetts. I currently work full time and he owns his business as a general contractor. We both have a vested interest in the property. We wanted to form an entity but didn't have the time before the loan. The property turned out a lot more expense than we anticipated so far. We have a decent system for paying and communicating. We are currently fixing it up to rent then refinancing to get all the vested amount back.

3 units Beach Rental. 

383,000 purchase price

50k reno budget 

Main points I am concerned about.

1. What would have been the best approach to purchasing this property together?

2. How will this income and expense of the rental property come tax season?

3. Concerned at the strain in the family unit with this property being in the middle of us? 

4. Should I try and be bought out come refinance time? 

Thank you 

Hector